"SWIFT is the messaging system that underpins much of the world's cross-border payments. This claim implies XRPL could one day facilitate transactions worth around $21 trillion each year. For believers, it signals a future where blockchain rails handle a meaningful share of global liquidity. For skeptics, it looks like marketing hype. To assess the vision, you need to understand SWIFT's scale, Ripple's strategy, and the hurdles ahead. Here's the full picture."
"The Society for Worldwide Interbank Financial Telecommunication isn't a payment system but a messaging network. Members send instructions that let banks settle directly. In 2021, its network processed an estimated $5 trillion per day, or roughly $150 trillion annually. That scale gives SWIFT a stranglehold on cross-border payments. Even modest percentages of its volume equal vast sums. One percent of $150 trillion equals $1.5 trillion."
XRPL could handle about 14% of SWIFT's current messaging volume within five years, implying potential annual transactions near $21 trillion. SWIFT operates as a messaging network rather than a payment system and processed an estimated $5 trillion per day in 2021, roughly $150 trillion annually. The correspondent banking model produces slow, costly transfers and requires prefunded accounts that tie up capital. Cross-border spending is forecast to grow substantially, creating openings for faster rails. Ripple's On-Demand Liquidity (ODL) uses XRP to eliminate pre-funding of accounts and aims to provide instant liquidity while SWIFT tests blockchain integrations and faster payment schemes.
Read at 24/7 Wall St.
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